- Altus Midstream surprised the market during 2020 when they started paying dividends, which sent their share price surging massively and even now their yield remains high at almost 10%.
- They are forecasting for their adjusted EBITDA to increase by upwards of 30% during 2021 versus 2020, which in theory could point to further dividend growth.
- Despite seeing their adjusted EBITDA surge during the first quarter of 2021, there has seemingly been no tangible benefit translated to their actual financial statement and thus cash flow performance.
- Until such time as this changes, their dividends appear stuck where they started since their coverage is only just adequate.
- Since this still provides a high yield and their financial position is healthy, I still nevertheless believe that a bullish rating is warranted.
For further details see:
Altus Midstream: Dividends Might Already Be Stuck Where They Started